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posted Jun 4, 2019 1:23:14 PM

If I withdrew money from retirement for a house down payment as a first time home buyer, does that need to be reported as "early retirement withdrawal" or anything? Thx!

Money was withdrawn from a Roth IRA and a Traditional IRA

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1 Best answer
Level 15
Jun 4, 2019 1:23:16 PM

The 1099R for both the Roth and the Traditional IRA both need to be entered into TurboTax.

After they are entered there will be a number of questions and this is where you will answer about the First Time Home purchase. Start with the Traditional IRA (nonRoth) withdrawal first, and then if the withdrawal is less than the $10,000 use that towards the Roth withdrawal.  Finish the first 1099R compeltely before you start the 2nd 

You can put up to $10,000 of IRA funds when you want to buy your first home. The IRS says the first-time homebuyer using your IRA funds for a down payment can be you, your spouse, one of your children, a grandchild or a parent. You must use the IRA funds within 120 days of withdrawal to pay qualified acquisition 

 To enter pension and annuity Payments (1099-R)

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

1 Replies
Level 15
Jun 4, 2019 1:23:16 PM

The 1099R for both the Roth and the Traditional IRA both need to be entered into TurboTax.

After they are entered there will be a number of questions and this is where you will answer about the First Time Home purchase. Start with the Traditional IRA (nonRoth) withdrawal first, and then if the withdrawal is less than the $10,000 use that towards the Roth withdrawal.  Finish the first 1099R compeltely before you start the 2nd 

You can put up to $10,000 of IRA funds when you want to buy your first home. The IRS says the first-time homebuyer using your IRA funds for a down payment can be you, your spouse, one of your children, a grandchild or a parent. You must use the IRA funds within 120 days of withdrawal to pay qualified acquisition 

 To enter pension and annuity Payments (1099-R)

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button